‘Titanic’ builder in trouble as loan backing refused and CEO leaves

A Hansard written statement from the secretary of state for Business & Trade Jonathan Reynolds said the government had made the decision ’based on a comprehensive assessment of the company’s financial profile and the criteria set out in our risk policies’.

The crisis has occurred just five years after the company was saved in the 11th hour from going into administration by InfraStrata, which bought it for £3.3 million (€3.9 million) when Norwegian owner Dolphin Drilling filed for bankruptcy.

“We have also decided not to provide any form of emergency liquidity funding.” the statement from Reynolds says. “While such a decision is not easy, it is my assessment, following extensive engagement by my officials with market players, that HM Government funding would not necessarily secure our objectives and there is a very substantial risk that taxpayer money would be lost.

“The Government believe, in this instance, that the market is best placed to resolve the commercial matters faced by Harland & Wolff.”

The statement said Harland & Wolff had begun discussions with existing creditors Riverstone Credit Management to secure additional funding to allow the business ’to continue pursuing its short and longer-term objectives’.

“Harland & Wolff indicates that these discussions on new financing should conclude in the next few days. This will involve the current CEO taking an immediate leave of absence and the onboarding of new management with a focus on recapitalisation and ensuring sustainable finances,” the statement says.

’Restructuring expert’  Russell Downs will reportedly take the helm as interim CEO.  

“I welcome potential new financing for Harland & Wolff and the appointment of new management and wish them all the best in their continued efforts to build up this business,” says Reynolds.

“Shipbuilding supports 42,600 jobs nationwide, adds £2.4 billion to the economy every single year, and is an important pillar of our civil and defence industrial base. We are committed to supporting vibrant and successful shipbuilding and fabrication industries, and our skilled workforces who deliver them, in all parts of the UK, in which Harland & Wolff has its role to play.”

“Business is continuing at Harland & Wolff and we are focusing on identifying future strategy,” said a spokesman at Harland & Wolff. “We will not be commenting further at this time.”